Is the euro zone’s doom loop still to be feared?

enough to remember the euro zone’s economic crisis of a decade ago may have felt a shiver of on June 15th, when the European Central Bank () called an emergency meeting to discuss the widening spreads between member countries’ government-bond yields. It is nearly exactly a decade ago that, as yields soared, Mario Draghi, then the president of the , promised to do whatever it took to preserve the single currency. In both instances, bond spreads began to narrow after the central bank intervened. Today the is considering an “anti-fragmentation” tool to lower spreads, say by buying the bonds of weaker countries (provided they meet certain conditions). Nonetheless, worries that the currency union might start to look shaky remain in the air. The fiscal position of Italy in particular, which last year had net public debt in the region of 140% of , is preoccupying investors. Should interest rates rise much more, financial markets might start to doubt .